Louisiana tops US sales tax rankings in new report. Here's why.
Louisiana tops US sales tax rankings in new report. Here's why.
Presley Bo Tyler, Shreveport TimesThu, March 12, 2026 at 3:06 PM UTC
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Retail sales taxes are a major revenue source for a majority of U.S. states, with only five states not imposing a statewide sales tax.
In addition to statewide sales tax, many municipalities also impose local sales taxes, which often help fund local government services.
While these sales taxes are common in the majority of states, some rates may be higher than others.
Louisiana has the highest state and local sales tax rate in the country
Louisiana has the highest combined state and local sales tax rate in the country and the second-highest average local sales tax rate in the U.S., according to the Tax Foundation.
While Louisiana ranks 32nd for state sales tax alone, with a rate of 5.0%, the average local sales tax rate is 5.11%, making a combined state and local sales tax rate of 10.11%.
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In comparison, the nationwide average combined sales tax rate is 7.53%, while Alaska has the lowest combined sales tax, with a rate of 1.82%.
Louisiana is the most recent state to raise its sales tax rate, increasing from 4.45% to 5% in January 2025, says the Tax Foundation.
States with the highest and lowest sales tax
Here are the states with the highest and lowest combined state and average local sales tax rates, according to Tax Foundation.
Louisiana has the highest state and local sales tax rate in the country. -
Louisiana: 10.11%
Tennessee: 9.61%
Washington: 9.51%
Arkansas: 9.46%
Alabama: 9.46%
Oklahoma: 9.06%
California: 8.99%
Illinois: 8.96%
Kansas
New York
Arizona
Missouri
Nevada
Texas
Minnesota
Colorado
New Mexico
Georgia
South Carolina
Utah
Ohio
North Dakota
Mississippi
Rhode Island (tie)
Indiana (tie)
North Carolina
Nebraska
Florida
Iowa
New Jersey
West Virginia
Vermont
Connecticut
Pennsylvania
Massachusetts
South Dakota
Idaho
Michigan (tie)
Kentucky (tie)
Maryland (tie)
Virgina
Wisconsin
Wyoming
Maine
Hawaii
Alaska
New Hampshire, Delaware, Oregon and Montana are not included in the ranking because they do not have state and local sales tax rates.
Presley Bo Tyler is a reporter for the Louisiana Deep South Connect Team for USA Today. Find her on X @PresleyTyler02 and email at PTyler@Gannett.com
This article originally appeared on Shreveport Times: Here's why Louisiana has the highest sales tax rate in the country
Source: “AOL Money”
